Sec. 31.158.  REAL ESTATE TRANSACTIONS AUTHORIZED BY LEGISLATURE.  (a)  If the legislature authorizes a real estate transaction involving real property owned by the state, the division shall take possession and control of the real property and shall negotiate and close such real estate transaction on behalf of the state.  In performing such duties, the division shall act on behalf of the state agency which owns or controls the subject state real property. Proceeds from the real estate transaction shall be deposited in the Texas capital trust fund unless the proceeds are dedicated by the constitution of this state to another fund or unless the enabling legislation ordering the real estate transaction provides otherwise.
(b)  The division may not take possession and control under this section of real property administered by a state agency that, under Chapter 2201, Government Code, is ineligible to benefit from the Texas capital trust fund.
(c)  Unless the enabling legislation or general law authorizing the real estate transaction specifies a different procedure, the division shall transact the sale or lease of state real property in the following manner:
(1)  The sale or lease shall be by sealed bid, by public auction, or as provided by Subsection (d);  provided, however, the School Land Board shall have the first option to purchase such real property pursuant to Section 31.159 of this code.  Subdivisions (2)-(7) apply only to a sale or lease by sealed bid or public auction.
(2)  Notice of the sale or lease shall be published at least 30 days prior to the date of sale or lease in at least three issues of four daily newspapers in the state.  One of the papers must be of general circulation in the county where the real property is located.
(3)  The notice shall state that real property is to be offered for sale or lease on a certain date and that lists describing the real property and terms of sale or lease can be obtained from the division.
(4)  No bid may be accepted that does not meet the minimum value established by the commissioner, which shall not be less than market value.
(5)  The division may reject any and all bids, but if the division elects not to reject any and all bids, it is required to accept the best bid submitted.
(6)  If the award of a bid does not result in a final transaction with the bidder, the land office may solicit proposals, negotiate, and sell, exchange, or lease the real property, provided that the sales price may not be less than market value.
(7)  If, after proper notice has been posted, no bids meeting the minimum requirements are received at the appointed time and place for the sale or lease, the division may solicit proposals and negotiate the sale, exchange, or lease of the real property to any person, provided that the sales price may not be less than the market value of the real property. The governor must approve any sale or lease of real property negotiated under this section. Failure of the governor to approve the sale or lease constitutes a veto of the transaction.
(8)  Each grant of an interest in real property made pursuant to this section shall be made by an instrument signed by the commissioner and, if the governor's approval is required, by the governor.
(9)  The expenses incurred by the division in conducting the sale, exchange, or lease, including the payment of reasonable brokerage fees, may be deducted from the proceeds of the sale prior to deposit in the Texas capital trust fund or other appropriate depository account.  The division may promulgate rules relating to the payment of reasonable brokerage fees.
(10)  These procedures will not apply to sales or leases of real property that are possessed by an agency that under Chapter 2201, Government Code, is ineligible to use the Texas capital trust fund or real property which belongs to the permanent school fund.
(11)  Prior to the actual sale or lease, the state representative and state senator in the district where the subject real property is located shall be notified of all efforts to sell or lease the real property and shall be provided with copies of all brokerage contacts relating to the sale or lease.
(d)  The division may contract for the services of a real estate broker or a private brokerage or real estate firm in the course of a real estate transaction under this section if the commissioner determines contracting for those services is in the best interest of the state.
Added by Acts 1985, 69th Leg., ch. 102, Sec. 2, eff. May 15, 1985.  Amended by Acts 1989, 71st Leg., ch. 839, Sec. 1, eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 633, Sec. 2, eff. Aug. 26, 1991;  Acts 1995, 74th Leg., ch. 76, Sec. 5.95(5), 12.01(a), eff. Sept. 1, 1995;  Acts 2001, 77th Leg., ch. 685, Sec. 3, eff. Sept. 1, 2001;  Acts 2003, 78th Leg., ch. 1091, Sec. 17, eff. June 20, 2003.